Lease re-deliberations drawing to a close - The impact of recent decisions

In depth Apr 10, 2015

Re-deliberations on leasing are drawing to a close and lessees will see big changes.


The FASB and IASB each issued a revised Leases Exposure Draft in May 2013 that attracted significant comments from stakeholders, and which prompted the boards to reconsider key elements of the proposed standard. Although some aspects of the initial proposal have changed, and convergence between the FASB and IASB appears unlikely, the key objective, to bring most leases on balance sheet, has been met.

As re-deliberations draw to a close, the FASB has retained a dual income statement model with classification of different types of leases similar to today. The IASB, on the other hand, has decided to require lessees to reflect all leases as financings. Over the past two years, there have also been other changes to the initial proposal related to classification, measurement, and disclosure. We expect final standards from the FASB and IASB before the end of 2015.

This In depth discusses the key provisions expected in the final standards based on the boards’ re-deliberations.

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David Schmid
IFRS & US Standard Setting Leader, National Professional Services Group

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